Enterprise Resource Planning (ERP) systems are becoming increasingly popular among businesses looking to streamline operations and improve efficiency. But with so many options available, it can take time to figure out where to start.
This discussion provides an overview of what you should consider when considering an ERP system for your business.
Common problems on why companies look to ERP
- “Multis” – complexity from multiple products, services, regions, legal entities or other “multis”
- Multiple applications and integrations
- Lack of visibility of data
- Systems don’t talk to each other
- Manual labour and data entry
What is an ERP?
An ERP is an enterprise resource planning, usually called the organization’s system of record. At its most basic level, ERP helps to efficiently manage all the core business processes needed to run a company, such as finance, human resources, manufacturing, supply chain, services, procurement, and others, in an integrated system.
Benefits of an ERP
- Higher productivity: Streamline and automate your core business processes to help everyone in your organization do more with fewer resources.
- Deeper insights: Eliminate information silos, gain a single source of truth, and get fast answers to mission-critical business questions.
- Accelerated reporting: Fast-track business and financial reporting and easily share results. Act on insights and improve performance in real time.
- Lower risk: Maximize business visibility and control, ensure compliance with regulatory requirements, and predict and prevent risk.
- Simpler information technology: Integrating ERP applications that share a database can simplify information technology and make work more accessible for everyone.
- Improved agility: With efficient operations and ready access to real-time data, you can quickly identify and react to new opportunities.
How do ERP Systems Work?
Integrated modules or business applications make up your ERP. The modules and applications talk to each other and share a common database.
Each ERP module typically focuses on one business area but uses the same data to meet the company’s needs.
Companies can choose the modules they want and add on and scale as needed. ERP systems also support industry-specific requirements, either as part of the system’s core functionality or through application extensions that seamlessly integrate with the suite. You can purchase ERP software on a cloud subscription (software-as-a-service) or a licensing model (on-premise).
If ERP is required, how should I evaluate it?
When evaluating an ERP system, it is essential to consider factors such as cloud versus on-premise solutions, risk factors of cloud ERP, and the advantages and disadvantages of on-premise ERP.
It is also important to consider system selection, pricing strategies, dedicated resources for project management, data migration strategy, and integration strategy.
Emerging ERP Comparison
AmplifyTech implements, consults and licenses the two best-emerging ERPs on the market. They are an excellent fit for most businesses ready for an ERP.
NetSuite and Acumatica are both cloud-based ERP systems, meaning the software is maintained and updated by the software vendor and accessed by the customer via a web browser.
However, Acumatica is based on an on-premises architecture and does offer an on-premises option.
Implementation & Support
Both vendors allow their products to be implemented and supported by their extensive partner network, including AmplifyTech.
Selecting an implementation and support partner can be more important than the software choice.
~49% of ERP implementations get done on time
~50% of ERP implementations fail the first time around
~65% of ERP implementation budgets go over because the system needs customization to improve usability.
Little of these statistics or any of the other similar fears are due to the software. The choice that drives success is often related to the partner, the relationship, and the approach.
The other significant factors are the project team and the companies themselves. Companies only realize the risks after they sign the contract.
AmplifyTech reduces the risk of failure by prioritizing Client Experience, which means we put relationships and people first, align with the organization’s strategy and goals and integrate and participate in culture. The unique approach of AmplifyTech, values, and local expertise differentiate them in the emerging ERP and technology market.
Partner Ecosystem
Both vendors have ‘apps’ or independent software vendors built on or tightly integrated into the ERP, which allows partners to increase functionality or fill in product gaps.
Pricing
Pricing is an area in which a great advisor can make a significant difference. There are essential negotiations to consider, and many buyers do not understand the differences between the various terms and conditions and options.
Several contract details can change your overall cost, and that whole picture is vital to making an intelligent decision.
Implementing an ERP requires significant time, change management, and money.
Part of planning and setting yourself up for success needs to be a forecast. Take the contract and illustrate to the decision-makers the total cost of your system over 5-10 years.
Ensure you understand the impacts of significant discounts upfront, locked-in rates, contract length, anticipated users or transactions and the many other changing factors that will drive costs and continue to evolve as your business grows.
Invest in Your Growth
An ERP system can benefit businesses looking to streamline their operations and improve efficiency. Businesses with growth plans that include multi-regions, products, services or other complexities benefit from early adoption.
